NI 43-101 Preliminary Economic Assessment - Verde Potash

Verde Potash Plc 14-3
Cerrado Verde Project
NI 43-101 Preliminary Economic Assessment
Surface runoff studies - comprising the analysis of the physiographic features of the basin
and its coverage;
Determination of the Project Flow - shall be developed according to the Rational Method;
Surface Runoff Coefficient - shall be considered depending on the type of area to be
drained and surface coverage;
Concentration Time - shall be calculated using the Kirpich formula;
Rainfall intensity - shall be calculated for the rainfall post of the region;
Rainfall Calculation - rain duration (tc) = 2.0 hours shall be adopted;
Precipitation per square meter - the duration of rain (tc) = 2.0 hours shall be adopted;
Precipitation per square meter that drains - the runoff coefficient = 0.90 shall be adopted;
and
Time Period of Return and Recurrence - (TR) = 10 years.
14.4 Buildings and Ancillary Facilities
There are no buildings or other facilities on the property, besides a rented small shelter for field
activities support in the city of Matutina, and the main office in Brazil in Belo Horizonte. Plant,
Mill, office, and mine building will be constructed as part of the mine development in the area.
14.5 Potential Processing Plant Sites
Among the several possibilities for site location, Verde is considering to install the plant close to
Matutina, a small town close to the City of Sao Gotardo, which is a local pole. Two sites are
being considered, Target 7 and Funchal Norte Target.
14.6 Potential Tailings Storage Area
Tailings from process are generated due to:
Inadequate particle size, as the product has to be produced in a 2-4mm diameter range.
Tailings are those materials which do not comply with such specification, mainly dust
from pellet handling; and
Unburned or not sufficiently burned material, produced mainly from flushes during kiln
operation.
Both are to be stored in Storage & Reclaiming stockpile, to be reprocessed. Therefore, no tailing
accumulation or landfilling is foreseen for tailings. The Storage & Reclaiming stockpile area has
not yet been defined.
14.7 Potential Waste Disposal Area
The design criteria adopted for the landfill areas (location not yet defined), shall include the
implementation of the materials deposit, whether from cuts, or loan, within the limits of design
sections ("offset") at the project influence areas facilities.
SRK Consulting (U.S.), Inc. September 16, 2011
Cerrado Verde_NI 43-101 PEA_343500.020_007_KG